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SBI opposes Paramount’s revival plan

Statesman News Service |

MUMBAI, 21 JUNE: State Bank of India (SBI) has written to aviation regulator Director-General of Civil Aviation expressing concern over the grounded Paramount Airways’ plans to re-launch the carrier, saying it has been in default for long.
“Yes, we have written to the  DGCA expressing our concern, as the company has been in default for long. We informed them of the arrears that the airline promoters owe us and other banks,” said SBI Chairman Pratip Chaudhuri. “They have defaulted on around Rs 100-crore loan we have extended to them (since late 2008). Currently, we are in the recovery process,” he said.
Paramount owes around Rs 450 crore to an SBI-led consortium of banks which includes Bank of India, Central Bank of India, IDBI Bank, Indian Bank and Andhra Bank.
However, Mr M Thiagarajan, Promoter and Managing Director of Paramount Airways said that he had cleared the dues to SBI on 22 May 2013, except for some penal interest which he is trying to get waived. pti